Debt management providers act as a third party between creditors and debtors. They facilitate the payments between debtors to creditors.
The Department of Commerce and Insurance regulates the licensing of debt management providers. Additionally, a surety bond is also required to be furnished in the appropriate amount.
According to Tennessee Code, Title §47-18-5513, you are required to purchase a surety bond that is $50,000.
However, in individual cases, according to the same statute, the administrator may require a surety bond lesser or greater than the $50,000 surety bond. Considerations for the surety bond amount include experience, your financial condition, and your perceived risk to consumers.
The cost to you for this surety bond will depend on the amount of surety required and information supplied by you in the surety bond application.
Also, a credit score will be a big factor (if not the most important) in determining the cost for this surety bond.
While prices will vary based on the above information, a well qualified applicant may pay between 1-3% for this surety bond.
The surety bond for a debt management provider is active for one year from the date of issuance. The surety bond is renewed annually.
Your Tennessee debt management provider bond serves as a financial guarantee for your clients. It is a guarantee that all funds received will be remitted properly and in accordance with all statutes and any current or future amended legislation.
This surety bond protects your clients from acts of malfeasance or misfeasance on the part of a debt management provider, subject to a judgment order.
As principal of this surety bond, you agree to indemnify the surety for any costs and fees involved in the settlement of the claim. However, the aggregate liability will not exceed the amount of your surety bond.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, and fiduciary surety bonds throughout Tennessee.
Our agency also provides surety bonds nationwide.
Please call our agency today at:
Or, you may fill out the form below and an agent will call you. Completion of your bond order takes just a few hours (including underwriting).